Mr. John Kupice reports

H-SOURCE REPORTS Q2 2018 FINANCIALS WITH 59.9% REVENUE GROWTH

H-Source Holdings Ltd. has released its second quarter 2018 financial results for the three-month and six-month periods ending June 30, 2018. All results are reported under international financial reporting standards and in United States dollars, unless otherwise specified.

Operational highlights:

• Q2 revenue growth increased sequentially by 59.9 per cent to $471,112, consisting of $440,900 as revenue and net commission sales of $30,212;
• Contracted facilities that have signed up to participate on the network increased by 8.9 per cent to 1,204;
• Active facilities that have bought or sold on the network reached 234 an 8.8-per-cent increase over Q2;
• Total value of inventory on the platform available for sale grew to $1,830,398 at the end of Q2;
• Received allowance by the U.S. Patent and Trademark Office for U.S. Patent Application for Perishable medical product management systems, perishable medical product management methods and perishable medical product resale methods;
• On July 12, 2018, the company raised a gross proceed of $1.15-million through a brokered private placement.

               Q2 2018 KEY PERFORMANCE INDICATORS
  
                                     Q4 2017       Q1 2018       Q2 2018   

Revenue                              $179,096     $294,458      $471,112                                     
Contracted facilities                   1,065        1,105         1,204                                        
Active facilities                         189          215           234                                        
Inventory value on the platform    $1,577,444   $1,643,100    $1,830,398                                    

John Kupice, chief executive officer and director, commented: "Q2 revenue showed solid sequential growth driven by facilities increasing utilization of the platform. Facilities are experiencing the tangible benefits of H-Source and this is driving further adoption. We remain on track for continued revenue growth for the second half of the year."

About H-Source Holdings Ltd.

H-Source Holdings is a technology company operating within the health care industry through its wholly owned subsidiary, H-Source Inc. The company has developed a transaction platform that provides a private, secure and trusted marketplace for health care members to buy, sell and transfer devices, pharmaceuticals, capital equipment and supplies with each other.

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